VZCZCXRO5919
RR RUEHCN RUEHVC
DE RUEHGH #0546/01 3500526
ZNR UUUUU ZZH
R 150526Z DEC 08
FM AMCONSUL SHANGHAI
TO RUEHC/SECSTATE WASHDC 7424
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEHAAA/NSC WASHINGTON DC
RUEHOO/CHINA POSTS COLLECTIVE
RUEHGH/AMCONSUL SHANGHAI 8030

UNCLAS SECTION 01 OF 03 SHANGHAI 000546 
 
SENSITIVE 
SIPDIS 
 
USTR FOR CHINA OFFICE - TSTRATFORD, AWINTER, TWINELAND, DKATZ; 
IPR OFFICE - RBAE; AND OCG - TPOSNER 
DOC FOR NATIONAL COORDINATOR FOR IPR ENFORCEMENT - WPAUGH 
DOC FOR ITA/MAC: SZYMANSKI, YOUNG 
LOC/ COPYRIGHT OFFICE - STEPP 
USPTO FOR INT'L AFFAIRS - LBOLAND 
DOJ FOR CCIPS - TNEWBY 
FBI FOR LBRYANT, KSHIRLEY 
DHS/ICE FOR IPR CENTER - DFAULCONER 
DHS/CBP FOR IPR RIGHTS BRANCH - GMACRAY 
TREASURY FOR OASIA - DOHNER/CUSHMAN 
NSC FOR LOI, SHRIER 
 
E.O. 12958: N/A 
TAGS: ETRD KIPR ECON EINV PGOV CH
SUBJECT: SHANGHAI LEADS OUT ON JUDICIAL IP PROTECTION 
 
SHANGHAI 00000546  001.2 OF 003 
 
 
SUBJECT:  Shanghai Leads Out On Judicial IP Protection 
 
¶1.  (SBU) Summary:  Building on its reputation as high caliber 
center for judicial intellectual property (IP) protection, 
Shanghai has taken a number of measures since October to 
highlight and strengthen its judicial capabilities.  On October 
29, Shanghai held a ceremony for the establishment of the 
Shanghai Intellectual Property Arbitration Court with the 
support of the Shanghai IP Administration and the Shanghai 
Arbitration Commission (SAC).  Shanghai also proclaimed November 
to be the "IPR Judicial Protection Action Month," highlighting 
its judicial IP work with several separate events: a press 
conference to outline the initiative and summarize Shanghai 
courts' accomplishments in IPR protection, public IP trials, the 
announcement of judgments on several high profile IP cases, and 
a meeting to highlight judicial efforts on enforcing China's 
National IP Strategy.  Besides focusing on judicial IP 
protection, Shanghai also held its sixth annual International IP 
Forum in November, focusing on IP "transactions and services." 
Shanghai courts receive high marks from the U.S. business 
community for their professionalism and fairness, and as a 
result, continue attracting large numbers of both foreign and 
domestic rights holders seeking litigation.  By establishing a 
special IP Arbitration Court, Shanghai hopes to gain a similar 
reputation for its arbitration abilities.  End summary. 
 
Shanghai Promotes Arbitration as an Alternative 
--------------------------------------------- -- 
 
¶2.  (SBU) In October, Shanghai officially announced the 
establishment of the Shanghai Intellectual Property Arbitration 
Court.  The Shanghai IP Administration and the Shanghai 
Arbitration Commission (SAC) backed its establishment as a way 
to provide an alternative to civil litigation.  Vice Secretary 
General of SAC Huo Zhengmei told Econoff that Shanghai is 
grappling with a large load of IP cases and is looking to 
emulate practices in the West promoting increased use of 
arbitration centers to resolve IP cases.  This is the second 
specialized arbitration court under the SAC after the 
establishment of the Shanghai Financial Arbitration Court in 
¶2007. 
 
¶3.  (SBU) The Shanghai IP Arbitration Court has 61 arbitrators, 
including IP administrative officials, lawyers, judges, 
professors and legal advisers from various companies.  The group 
includes two foreigners (an academic and a lawyer).  Decisions 
from the IP Arbitration Court will be enforced by the Shanghai 
No. 1 and No. 2 Intermediate Courts.  During a speech at the 
opening ceremony, Shanghai IP Arbitration Court Director Wang 
Kangwu, who is also the SAC Vice Director, said Shanghai is 
currently drafting a special IP arbitration rule that would go 
into effect in the near future.  Zhejiang and Jiangsu IP 
Administrative officials also made remarks, welcoming the 
establishment of the Court and saying they hoped the Shanghai IP 
Arbitration Court would be another cooperation platform for IPR 
protection. 
 
Shanghai Highlights IP Judicial Protection 
------------------------------------------ 
 
¶4.  (SBU) As part of its efforts to showcase its judicial IP 
enforcement, Shanghai proclaimed November to be the "IPR 
Judicial Protection Action Month" and held several separate 
events to highlight its efforts.  During a press conference to 
kick off the month, Shanghai High Court Deputy Director Ying 
Xinlong summarized the courts' accomplishments and experiences 
in IP adjudication and outlined a list of notable events in the 
history of IP judicial protection in Shanghai.  He also 
highlighted judicial enforcement elements in China's National IP 
Strategy. 
 
A Public Glimpse Into IP Trials 
------------------------------- 
 
¶5.  (SBU) To showcase its judicial proceedings, Shanghai opened 
several IPR tribunals in district courts, intermediate courts, 
 
SHANGHAI 00000546  002.2 OF 003 
 
 
and the High Court for public viewing November 10-13.  One of 
the cases involved copyright infringement via the Internet. 
Beside allowing members of the public to attend the hearings, 
the Yangpu District Court and the No. 2 Intermediate Court 
broadcast case hearings over the Internet.  In addition, 
roundtables to solicit opinions on IPR judicial protection were 
held in the Shanghai High Court, as well as district courts in 
Pudong, Huangpu and Yangpu.  The Shanghai High Court also 
published proceedings of 30 "typical" IPR cases.  From November 
25-26, several lower IPR tribunals followed suit, publishing the 
judgments of a long list of IPR cases. 
 
Wrapping it Up 
-------------- 
 
¶6.  (SBU) To wrap up its Judicial Protection Action Month, 
Shanghai High Court publicly announced the judgments of three 
high profile IP case and held a meeting on November 26, 
introducing Shanghai judicial efforts to implement the National 
IP Strategy.  The three cases included a trademark infringement 
case, a copyright infringement case, and an Internet domain name 
dispute.  In all 3 cases, the defendants were all ordered to 
cease infringement and pay damages.  Although statutory damages 
were applied in all three cases, the amount varied depending on 
the circumstances of each case. 
 
¶7.  (SBU) In a speech, Shanghai High Court Deputy Director Ying 
noted the Shanghai High Court has published its opinions 
regarding the implementation of the National IP Strategy. The 
opinions listed several measures that Shanghai courts would take 
to protect IPR:  fairly hear civil IPR disputes; supervise and 
support IPR administrative enforcement; severely punish 
IPR-related crimes; encourage case settlement through mediation; 
deepen judicial capacity through a specialized adjudication 
system; improve investigative techniques on technical facts; 
decrease costs for safeguarding rights while increase the costs 
of infringement; and strengthen cooperation with administrative 
departments and courts in other provinces. 
 
¶8.  (SBU) Regarding building judicial capacity in Shanghai 
courts, Ying stressed that Shanghai is focused on creating a 
"specialized adjudication system" and extending the model of 
combining civil, administrative, and criminal cases into one 
tribunal.  The Shanghai High Court has published guidelines for 
district level courts on procedures for hearing IPR-related 
civil, administrative and criminal cases.  Ying also announced 
that the Luwan District Court will be the 4th district level 
court in Shanghai that has received national Supreme People's 
Court approval for an IPR tribunal.  The three other Shanghai 
districts previously approved for IPR tribunals are Pudong, 
Huangpu, and Yangpu. 
 
Shanghai's International IP Forum 
--------------------------------- 
 
¶9.  (SBU) Besides spotlighting judicial IP efforts, Shanghai 
also sponsored its 6th International IP Forum on November 6. 
This year's forum focused on "IPR transaction and service." 
State IP Office Commissioner Tian Lipu, Shanghai Mayor Han 
Zheng, Shanghai Vice Mayor Zhao Wen, World Intellectual Property 
Organization Senior Counselor Carlos Mazal and Canadian IP 
Office Director Mary Carman were among the notable participants 
in the forum.  Together with other speakers from China and a 
host of other countries, they addressed over 200 attendees, 
including experts, scholars, government officials and business 
representatives.  They discussed the role of government in IPR 
transactions, development of laws related to licensing and 
transfer, the concept of IPR public service, and IPR management 
within businesses, inter alia. 
 
Comment 
------- 
 
¶10.  (SBU) Shanghai courts, widely recognized among both the 
Chinese and foreign business community for their professionalism 
and fairness, attract a large number of litigants.  Shanghai is 
 
SHANGHAI 00000546  003.2 OF 003 
 
 
also on the forefront of judicial transparency in China, 
regularly publishing rulings on the Internet and opening a wide 
spectrum of tribunals for public scrutiny.  Shanghai's 
showcasing of its judicial efforts on IP protection only 
bolsters its reputation.  Although IP arbitration is not new in 
Shanghai (the SAC has long arbitrated IP cases), the 
establishment of a special IP Arbitration Center shows the city 
is substantially beefing up its resources in the area and hoping 
to become a respected center for IP arbitration.  Chinese 
companies hope this move will entice their foreign counterparts 
to arbitrate locally, saving Chinese companies the heavy costs 
of arbitrating overseas. 
CAMP